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Texas Special District Local Laws Code

§ 1017.161 — AUTHORITY TO BORROW MONEY; SECURITY

SD § 1017.161Title 3. HEALTH · Part A. HOSPITAL DISTRICTS · Ch. 1017. CULBERSON COUNTY HOSPITAL DISTRICT · Art. D. GENERAL FINANCE PROVISIONS

Statute text

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(a)The board may borrow money at a rate of not more than 10 percent a year on district notes to pay the obligations if the board declares that money is not available to meet authorized district obligations, which creates an emergency.
(b)To secure a loan, the board may pledge:
(1)district revenue that is not pledged to pay the district's bonded indebtedness;
(2)a district tax to be imposed by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds; or
(3)district bonds that have been authorized but not sold.
(c)A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.

Legislative history

Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.

Source: Texas Special District Local Laws Code § 1017.161 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.